Hong Kong Sees Growing Public Acceptance of Virtual Banks, Survey Shows

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Hong Kong, 30 October 2023 – A recent survey commissioned by the Virtual Banking Education Taskforce, established by the Hong Kong Association of Banks (HKAB), reveals that virtual banks are gaining substantial traction among individuals and small and medium enterprises (SMEs) in Hong Kong. This surge in acceptance highlights the innovative nature and convenience of virtual banking services. The VBE Taskforce underscores the importance of raising public awareness to foster greater adoption and enable a broader section of the population to access these advanced financial services.

The survey, conducted as an online questionnaire, aimed to gauge public perception and understanding of virtual banks. Results demonstrated a predominantly positive impression of virtual banks, with over 70% of the 1,000 individual respondents considering them innovative and convenient. Moreover, more than 90% of SMEs expressed positive views towards virtual banks, emphasizing their convenience and efficient technology-driven services.

Key findings from the survey include insights into the services that virtual bank users commonly access. Deposit and savings services are the most frequently used by individuals (63%), followed by credit card/debit card services (49%), and various rewards such as cash rebates and free gifts (45%). For SMEs, deposit/savings services are the primary choice (38%), followed by investment funds (28%), and money transfers (28%).

The survey also revealed a high level of public awareness regarding virtual banks’ advantages. Over 50% of individual respondents believed that virtual banks offer reduced document requirements, while 50% regarded them as innovative, and 48% considered virtual banks to have lower fees. This understanding of virtual banks has led to a steady rise in utilization, with 45% of surveyed individuals already having virtual bank accounts and an additional 30% expressing their intention to sign up for one within the next three months.

On the corporate front, over 90% of SMEs surveyed found virtual banks convenient and efficient, contributing to enhanced operational efficiency. The survey highlighted that SMEs have begun integrating virtual banking services into their business operations, with 76% of them holding virtual bank accounts. Interestingly, even though these SMEs have traditional bank accounts, they are inclined to open new accounts with virtual banks, reflecting their desire for efficient and convenient services.

One notable finding was the awareness of virtual banks being regulated by the Hong Kong Monetary Authority (HKMA). The survey indicated that 75% of individual respondents and 79% of SMEs are aware of this regulatory framework. Additionally, 65% of individual respondents and 62% of SMEs were knowledgeable about the deposit protection offered by virtual banks, ensuring up to HKD 500,000 in protection for account holders. All eight virtual banks in Hong Kong are members of the Hong Kong Deposit Protection Scheme.

A spokesperson for the Virtual Banking Education Taskforce stated that the survey results underscore the public’s improved understanding of virtual banks over the past four years. As the public recognizes that virtual banks are regulated and offer deposit protection similar to traditional banks, these institutions have the opportunity to provide customers with convenient experiences through fintech. The VBE Taskforce is committed to deepening public awareness of virtual banks through intensified promotional efforts, thereby further promoting fintech development in Hong Kong.

Virtual banks offer secure and innovative services with strong security measures, transparent privacy management, and protection of deposits, ensuring individuals and businesses can achieve their financial objectives efficiently.